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Section 189a applies to employers with more than 50 employees and imposes onerous conditions.
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Retrenchment is a specific accumulation process governed away sections 189 and 189a of the labour relations act.
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Why is retrenchment important to a successful business?
This is because successful retrenchment forces a business to refocus on what it does best and how to compete effectively in order to succeed. Whilst often painful to stakeholders (particularly employees and management) retrenchment is usually an intrinsic part of any significant strategic change for a business that needs to be turned around.
When to use retrenchment to end employment contract?
There is several ways to end an employee’s employment contract. One of the way can be used to end the contract of employment is through retrenchment.Termination of employment contract through retrenchment will be relevant when there is restructures or reorganization by an employer in order to have a better economy.
What's the difference between retrenchment and cutting back?
The logic of this analysis is as follows. Retrenchment involves cutting back. That often means the loss of significant numbers of management and other staff positions as well as a reduction in capacity. It can also involve the disposal of business units that provide value to other parts of a business group.
Last Update: Oct 2021
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